Grant Funding and Accelerator Programme

Gelion (AIM: GELN), the Anglo-Australian battery innovator, announces the incorporation of a wholly owned subsidiary, Battery Minerals Ltd ("Battery Minerals"), in the UK, to develop and then commercialise the Lithium-Ion ("Li-Ion") recycling technology acquired from Johnson Matthey in 2023. Battery Minerals has also been awarded a grant of up to £170,000 by the UK government's Department of Business and Trade (DBT) and facilitated by the Advanced Propulsion Centre UK (APC) as part of the Technology Developer Accelerator Programme (TDAP).

The objective of Battery Minerals is to develop a novel recycling process designed to provide lower cost, lower waste, lower eCO2 and provide the ability to efficiently extract lithium from more battery scrap sources. The growing volume of battery waste presents an environmental challenge, an economic opportunity (projected to be worth $30-40 billion globally by 2030[1]) and a strategic opportunity (self-sufficient minerals supply).

The grant will be used to support a market-focused study and technology development programme to identify the most efficient route to commercialisation of the Battery Recycling IP. TDAP will also provide significant commercial support to Battery Minerals within the UK battery ecosystem through connection with potential customers, investors, and supply chain partners.

Gelion will also allocate funding of c. £100k during the accelerator programme while the intrinsic value of the Battery Minerals entity and business continues to be developed and clarified with the support of the accelerator process to assess value and monetisation strategy.

The programme will be delivered in 2 phases:

Phase 1: Market Focus (June 24 - Jan 25) & Phase 2: Technology Validation (Feb 25 - Nov 25)

• Activities: Phase 1 would include development of an in-depth techno-economic analysis, go-to-market strategy, and product strategy with the support of industry partners. Phase 2 activities would include research and development to increase the technology readiness level (TRL) of the recycling process and potentially support a feasibility study for a larger scale pilot plant.
• Funding: Up to £170,000 including £20,000 of in-kind funding from the programme delivery partners.

Participants in TDAP have reported an "average acceleration of 19 months to market entry[2]" with over £250 million in private capital raised since the programme's inception in 2014.

Gelion CEO John Wood said: "We are delighted to establish Battery Minerals in the UK and are very grateful to the APC for its grant support which provides an ideal approach to advance the commercial and technology planning for our Lithium-Ion recycling technology suite, building a path to an independent investment case and value for our shareholders. The IP suite includes an overarching patent application for the end-to-end process and individual patent applications for each process step. Collectively the 10 patent families offer an efficient and effective method to recover Lithium and other component minerals from scrapped Lithium-Ion cells. This exercise aims to identify the most efficient pathway toward commercial value of the Recycling IP portfolio."

In May 2023, Gelion provided an update on its strategic progress on developing value from the IP portfolio acquired from Johnson Matthey, primarily to support the Group's Lithium-Sulfur development. This update also highlighted additional potential for commercialisation opportunities in the area of battery recycling (Battery Recycling IP).

After further assessment, Gelion has decided to develop the Battery Recycling IP in a purpose-oriented entity aimed at realising value for the Company's shareholders. To facilitate this, Gelion has incorporated a wholly owned subsidiary, Battery Minerals Ltd.

Battery Minerals aims to increase the recycling of lithium-ion and sodium-ion battery waste, contributing to the creation of a circular economy for battery metals such as lithium, nickel and cobalt.

Many current battery recycling processes use crude chemistry meaning they are highly capital intensive, generate large quantities of solid waste, and are inefficient at recovering available value (e.g. limited lithium recovery). This means long investment payback timelines and difficulty in establishing processes in high regulation environments like Europe and Australia.

Battery Minerals' innovative chemical processes aim to:

• Recover more metals (including lithium), to increase the revenue per/kg of waste inputs.
• Reduce upfront costs and increase equipment lifetime by utilising less harsh chemicals.
• Reduce solid waste generation and subsequent eCO2 by using novel extraction methods.
• Increase product purity using novel impurity removal methods.

The Battery Recycling IP portfolio can operate either as a standalone process or integrate with existing recycling operations delivering cost and performance benefits thereby offering flexibility in our commercialisation strategy. Gelion is currently exploring collaboration in battery recycling with partners.

The technology was previously implemented at lab-scale by Johnson Matthey, and Battery Minerals is aiming to develop the technology following reinstatement of the laboratory testing and completion of a feasibility study, with customer trials to assess value and monetisation strategy.

Corporate Finance Neil McDonald; Seamus Fricker; Fergus Sullivan Sales Leif Powis

Lithium Sulfur

Background on Gelion's GEN 3 Lithium Sulfur

• High energy density - Energy density greater than 400 Wh/kg, when using a 10+ Ah pouch cell.

GEN 3 uses the extensive network of Li-S technologies developed within Gelion and contained in the patents acquired from Johnson Matthey in March 2023.

Zinc

Recycling

Gelion is developing an innovative battery recycling technology designed to enhance and supplement current recycling methods. Our technology aims to reduce the initial costs of recycling plant processes, minimise waste, and lower carbon emissions, while improving the purity of metal products and enabling efficient lithium extraction. This advancement will allow for a broader range of scrap materials to be recycled. Currently in the feasibility stage, Gelion is committed to advancing our technology to a pilot-scale demonstration, paving the way for commercialisation through material production and IP licensing.

About the Advanced Propulsion Centre UK

The Advanced Propulsion Centre UK (APC) collaborates with UK government, the automotive industry and academia to accelerate the industrialisation of technologies, supporting the transition to a net zero automotive supply chain in the UK.

Since its foundation in 2013, APC, with the backing of the UK Government's Department for Business and Trade (DBT), has funded 264 low-carbon and zero emission projects involving 492 partners, working with companies of all sizes, and will have helped to create or safeguard over 58,000 jobs in the UK. The technologies developed in these projects are projected to save over 410 million tonnes of CO2.

With its deep sector expertise and cutting-edge knowledge of new propulsion technologies, APC's role in building and advising project consortia helps projects start more quickly and deliver increased value. In the longer term, its work to drive innovation and encourage collaboration is building the foundations for a successful and sustainable UK automotive industry.

In 2020 UK Government established the Automotive Transformation Fund (ATF) to accelerate the development of a net-zero vehicle supply chain, enabling UK-based manufacturers to serve global markets. ATF investments are accessed through the APC and awarded by DBT to support strategically important UK capital and R&D investments that will enable companies involved in batteries, motors and drives, power electronics, fuel cells, and associated supply chains to anchor their future.

For more information go to www.apcuk.co.uk or follow us @theapcuk on X and Advanced Propulsion Centre UK on LinkedIn.

[1] https://www.statista.com/statistics/1103263/li-ion-battery-recycling-market-size/

[2] https://www.apcuk.co.uk/get-involved/competitions/tdap-wave-8/